Why and How Smart Security Leads to Home Insurance Discounts

The US has the strongest economy, it boasts an average life expectancy of more than 79 years, and it’s one of the leading countries in the field of technology. But that doesn’t make it a crime-free utopia.

Security is still a big priority. Both businesses and homeowners allocate portions of their budgets toward protecting their properties. And that’s why home insurance is such a large market in the US.

Smart security may just be the answer millions of people are looking for. Plus, securing your property with recognized security measures should help you find some useful home insurance discounts. Let’s see how this works.

What Is Smart Security?

Almost any digital device can connect to the internet nowadays. And when your security products can connect to the internet it’s referred to as “smart” security.

Thanks to the internet of things (IoT), smart home products of all sorts and kinds can connect to the internet. You’re now able to control these smart products from anywhere in the world as long as you have an internet connection. 76% of smart home products in the US are currently controlled by smartphones. This remote control ability helps give smart security its effectivity and versatility. And these unique attributes are what lead to homeowners insurance discounts.

What Is the Internet of Things?

People aren’t the only ones on the internet any more thanks to the internet of things (IoT). “Things” like computers, smart home products, and robots also use the internet. Hence the name. The IoT is like a vast network that stretches across the planet. Internet connectivity enables an IoT-ready product to work its magic.

The internet of things has made it possible for all kinds of devices to interact on a global scale. You can access your smart CCTV camera at home as long as you have a smart device in your hand and a stable internet connection. The IoT has created a new kind of market, and it’s changing every industry in the world—even the insurance market. Shopping for home insurance will never be the same again.

Some Home Security Statistics

Let’s have a look at the prevailing home security statistics in the US before we go any deeper into the world of home insurance. These numbers will help you understand how and why insurance companies make their decisions and determine prices.

1.4 Million Home Burglaries Occur per Year

You might be shielded from it. Your own neighborhood could have a relatively low crime rate. But the numbers don’t lie. Insurance companies are exposed to 1.4 million break-ins per year. That’s a burglary every 13 seconds. Keep this in mind next time you discuss prices on home insurance quotes.

88% of Burglaries are Residential

The vast majority of burglaries are residential in nature. Thieves are generally after cash goods and other resellable items commonly found in homes. Here we’ve compiled a list of the entry points burglars like to use.

The Most Common Entry Points
  • Front door (34%)
  • First-floor window (23%)
  • Back door (22%)
  • Garage door (9%)
  • Unlocked entrances (4%)
  • Second-floor entrances (2%)

Securing these entry points will definitely help you save on your home insurance premiums. We’ll discuss why it works in a little while.

Items Most Commonly Stolen

Home insurance isn’t cheap. The following items are the reason why. You can lower the risk of these items being stolen by installing certain smart security features, which can lead to homeowners insurance discounts.

Commonly Stolen Items
  • Cash
  • Electronics
  • Jewelry
  • Medications
  • Firearms or guns
  • Tools
  • Identification documents
  • Cars
  • Bikes

Most of these items are small and easy to transport. They’re also easy to hide. Thieves don’t want to be caught, but they also don’t want to leave empty-handed. They’ll try and take as many small expensive items possible. While cars are large items, the underground market for stolen parts has been on the rise according to a report by the National Insurance Crime Bureau (NICB). Thieves steal cars to strip them for parts.

When do Burglaries Happen?

Having some smart security installed at home will help you prevent burglaries when you aren’t there. This, in turn, will help lower home insurance costs. Interestingly enough, most burglaries don’t actually happen at night. According to the FBI, about 65% of home burglaries happen between 6 am and 6 pm. Burglars prefer times when the occupants of a home are at work or school. The most common time for a burglary is between 10 am and 3 pm. A victim is present in a burgled home in 30% of home burglaries.

Do Repeat Burglaries Occur?

Keep in mind when you’re seeking home insurance discounts that a few more factors are working against you. Police can only solve 13% of property crimes due to a lack of evidence or witnesses. Therefore, many thieves decide to repeat their former successes. 51% of homes suffer repeat burglaries within a month of the first incident. But smart security products will, first of all, prevent burglaries, and second, they’ll supply evidence to help catch the perpetrators. These statistics help justify lower insurance costs for protected homes.

Does Smart Security Prevent Burglaries?

Homes without security systems are 300% more likely to be broken into. Criminals don’t like their chances against sophisticated security systems. You can lower your risk of being burgled significantly by installing a smart security system, which will help you get a discount on your homeowners insurance.

Why Is Home Insurance so Expensive?

Insurance companies have shareholders. These companies need to make a profit every year to prove their profitability and keep their investors happy. But there’s a second group to serve as well. Insurance companies fork over billions per year to cover their customers’ claims. This is why they use risk models to determine the prices to charge.

Insurance companies have all kinds of ways to determine the risk you pose. For example, they determine the likelihood that your house will be broken into based on the demographic statistics of your neighborhood. By taking the crime rate, mortality rate, and other statistics (like how susceptible your house is to a natural disaster), they come up with your premium. Those with a lower risk profile will save on insurance.

What Are the Most Common Smart Security Products?

Smart home products are taking the world by storm. And smart security is a big part of the industry. Three out of five Americans buy smart home products (like a smart CCTV) that let them monitor their home via their smartphone.

Smart security doesn’t just save you money on your home insurance. It also helps you save on other things, like utility bills. Before we go into those statistics, let’s take a look at the most common smart security products.

Smart Alarm Systems

You have a good chance of getting a discount on your homeowners insurance for your alarm system. Smart alarms take the whole home security system and make it one functioning unit. Essentially, it connects all your different smart devices so they work in unison.

This provides you with a single point of access from which you can control your whole security system. Apps from all kinds of service providers and manufacturers can be used to interconnect your different products. Alerts from different units can set off the alarm. A smoke sensor can call the fire department, and a broken window will call the police. An integrated security system helps improve the overall level of security in your home.

Smart Security Cameras

A smart CCTV helps give you that extra piece of mind. It will also lead to cheaper home insurance. You can access it over something as simple as a smartphone. If you install these units at the entrances to your home, they will help keep an eye on things when you can’t.

This device also can to record what it captures. These images serve as evidence when you must rep